U.S., China mull $30B tariff cuts

U.S. and Chinese officials are discussing reciprocal tariff cuts covering roughly $30 billion of goods on each side, according to reports on May 20 and May 21, as the two governments test a narrower trade thaw without dismantling broader restrictions. The talks would apply to selected goods rather than the full tariff regime, and export controls and sector-specific curbs would remain in place. China’s Ministry of Commerce also confirmed that Chinese airlines will introduce 200 Boeing aircraft under broader trade understandings with Washington. At the same time, rare earths have been added to the negotiating agenda, widening the talks beyond tariffs and farm trade. ### Which goods are the two sides considering for tariff cuts? Reuters reported on May 13 that U.S. and Chinese negotiators were considering identifying about $30 billion worth of goods apiece for tariff reductions as part of a managed-trade mechanism for non-sensitive products. The report said the effort was designed to allow trade in selected goods without crossing what it described as national security red lines. (usnews.com) Reuters also reported on May 20 that China’s Ministry of Commerce said the two countries had agreed to cut tariffs on agricultural trade as part of a broader deal, but left implementation details unclear. The ministry’s statement, as carried by Reuters, said the understanding still required follow-through on how the reductions would be applied. (usnews.com) ### What is staying in place even if tariffs come down? China’s Ministry of Commerce indicated that tariff relief would not remove the wider architecture of trade restrictions, according to reports summarized on May 20 and May 21. Those restrictions include U.S. export controls and Chinese countermeasures, as well as sector-specific limits affecting industries such as shipping and shipbuilding, according to the source briefings and related reports. (msn.com) The structure matters because the current talks are narrower than a full trade reset. Reuters’ May 13 report described the proposed tariff cuts as focused on non-sensitive goods, an indication that Washington and Beijing are still separating commercial concessions from national-security measures. (pakistantoday.com.pk) ### Why are Boeing and rare earths part of the same conversation? China’s Ministry of Commerce said on May 21 that Chinese airlines will introduce 200 Boeing aircraft as part of broader trade understandings with the United States, according to Pakistan Today’s report citing the ministry. The same report said the two sides discussed tariffs, agriculture, rare earths and new trade councils. (usnews.com) A separate report said rare earths are now on the agenda alongside more conventional trade items. That puts one of China’s most strategically important export categories into the same negotiating channel as tariff reductions and aircraft purchases. ### Who is already pushing back in the United States? The National Potato Council said this week it filed formal comments with the Office of the U.S. (pakistantoday.com.pk) Trade Representative urging action against China’s frozen French fry exports. The group asked the USTR to raise tariffs, citing what it called China’s rapidly growing export capacity and a surge in shipments. (chosun.com) The filing shows that even limited tariff relief is running into pressure from domestic industry groups that want more protection, not less. In this case, the named U.S. participant in the next step is the Office of the U.S. Trade Representative, which received the council’s comments. ### What happens next in the talks? China’s commerce ministry said on May 20 that tariff cuts on agricultural trade were part of a broader deal but gave no detailed implementation timetable, according to Reuters. (potatopro.com) That leaves the next milestone in the hands of negotiators working through which goods qualify, how reductions are applied and how rare earths are handled alongside existing controls. The next public signals are likely to come from China’s Ministry of Commerce, the Office of the U.S. Trade Representative and any further disclosures tied to the Boeing aircraft plan. For now, the record shows selected tariff cuts under discussion, 200 Boeing planes confirmed by Beijing, and formal U.S. industry objections already on file. (pakistantoday.com.pk) (msn.com)